The first respondents participated in a municipal job creation programme initiated by the Ekurhuleni Metropolitan Municipality. They were employed in two distinct periods. During the first period (March 2014 to June 2015), they worked directly for the municipality under successive fixed-term contracts performing ongoing municipal cleaning services. Their contracts were terminated by effluxion of time on 30 June 2015. During the second period (December 2015 to August 2016), they were engaged under an internship-style fixed-term contract with Hlaniki Investment Holding (Pty) Ltd and Gauteng Enterprise Propeller, entities appointed to manage and coordinate the programme; the municipality was not a party to this contract. After termination of the first period, the employees alleged unfair dismissal and claimed they were deemed permanent employees under sections 198A and 198B of the Labour Relations Act (LRA). An arbitrator found the first period dismissals substantively and procedurally unfair and awarded three months’ compensation, but rejected the claim that the employees were deemed permanent during the second period. On review, the Labour Court increased compensation to 12 months but upheld the arbitrator’s findings on the second period. The municipality appealed against the increased compensation, and the employees cross-appealed on the deeming issue.